DE30 jumps above 14,100 pts and approaches 2-week highs

• European stock markets indices trade higher

• DE30 jumps above 14,100 pts resistance zone

• Daimler Truck gains after 2022 guidance boost

European stock market indices are trading higher on Tuesday with the majority of Western European blue chips indices gaining more than 1% today. Dutch AEX (NED25) and Italian FTSE MIB (ITA40) are top performers from Western Europe, gaining 1.6 and 1.7%, respectively. Polish WIG20 (W20) is top performer in Eastern Europe with a gain of 2.2% at press time. 

Source: xStation5

DE30 failed an attempt of breaking above the resistance zone ranging between 14,100 pts and 50% retracement of April drop yesterday. However, after a brief correction that was halted at the 38.2% retracement, upward move was resumed and the index managed to break above 14,100 pts this morning. DE30 is trading near 2-month highs at press time and there are no major resistance levels nearby. The nearest one to watch can be found in the 14,310 pts area and is marked with the 61.8% retracement. From a technical point of view, continuation of the upward move looks to be the base case scenario in the short-term but traders should be wary of a possibility of a pullback and retest of the 14,100 pts zone, this time as a support.

Company News

According to spokesman of RWE (RWE.DE), the German utility company opened an account at Gazprombank. RWE will deposit natural gas payments in euros, which will later be converted to rubles by Gazprombank. Such a move is in-line with the latest EU guidance.

Daimler Truck (DTG.DE) decided to boost the full-year forecast as prices of the company's products increased and it has benefited from favorable currency moves. Daimler Truck now expects 2022 revenue to reach €48-50 billion, up from a previous forecast of €47.5 billion. Company also said that it expects EBIT to be in-line with 2021 levels, instead of slightly below 2021 levels as previously expected.

Analysts' actions

• BMW (BMW.DE) rated "outperform" at Bernstein. Price target set at €100.00

• Krones (KRN.DE) upgraded to "buy" at HSBC. Price target set at €96.00

• Volkswagen (VOW1.DE) rated "market-perform" at Bernstein. Price target set at €208.00

• Porsche Automobil Holding (PAH3.DE) rated "underperform" at Bernstein. Price target set at €60.00

• Koenig & Bauer (SKB.DE) rated "buy" at Stifel. Price target set at €24.00

• Bechtle (BC8.DE) upgraded to "buy" at Baader Helvea. Price target set at €60.00

DAX top movers at 9:30 am BST. Source: Bloomberg